Key Takeaways

• Learn how background check software is evolving with AI, automation, and real-time data to improve hiring accuracy and compliance.
• Discover the latest industry statistics highlighting market growth, adoption trends, and sector-specific usage in 2025.
• Gain insights into emerging technologies and regulations shaping the future of background screening across global industries.

In today’s fast-paced digital landscape, background check software has become an indispensable tool for organizations, HR professionals, recruiters, and even individuals who seek to make informed decisions based on credible data.

With the exponential growth of online platforms, the increasing reliance on remote hiring, and the need for stringent regulatory compliance, background screening technology has undergone a rapid transformation.

As a result, the global demand for sophisticated, accurate, and AI-powered background check software solutions continues to rise significantly, shaping the future of recruitment, tenant screening, vendor verification, and beyond.

Background check software encompasses a wide range of functionalities, from criminal record searches and employment history verification to identity authentication, credit checks, social media scans, and more.

The software industry has seen a remarkable shift from manual background verification to automated, cloud-based platforms that offer real-time insights, seamless integrations, and user-friendly dashboards.

These developments not only enhance operational efficiency but also reduce risks, ensure legal compliance, and improve the quality of hiring or partnership decisions across sectors.

As companies become more global and diverse, ensuring the authenticity of candidates and third-party entities is now a critical priority.

Inaccurate hires or undisclosed criminal records can lead to reputational damage, legal consequences, and substantial financial losses.

To mitigate these risks, businesses are increasingly adopting advanced screening tools that leverage artificial intelligence, machine learning, and big data analytics to deliver fast, reliable, and comprehensive reports.

From Fortune 500 corporations to small and mid-sized enterprises (SMEs), the application of background check software is proving vital in safeguarding organizational integrity and trust.

In light of this growing significance, it is essential to understand the latest industry statistics, market trends, usage patterns, and emerging technologies that are influencing the evolution of background screening software.

Whether you’re a business leader seeking to invest in a reliable screening solution or a tech enthusiast curious about the future of verification technologies, staying informed through data-backed insights is key.

This comprehensive blog presents the Top 50 Latest Background Check Software Statistics, Data & Trends that shed light on the current state and future direction of the industry.

From market size growth and adoption rates to regulatory shifts and technological advancements, these insights offer a detailed perspective on how background check software is shaping modern decision-making across industries.

By analyzing credible studies, industry reports, and emerging innovations, this guide serves as a one-stop resource for understanding the evolving background verification landscape in 2024 and beyond.

Before we venture further into this article, we would like to share who we are and what we do.

About 9cv9

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With over nine years of startup and business experience, and being highly involved in connecting with thousands of companies and startups, the 9cv9 team has listed some important learning points in this overview of the Top 50 Latest Background Check Software Statistics, Data & Trends.

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Top 50 Latest Background Check Software Statistics, Data & Trends

1. 95% of employers conduct at least one type of background check during the hiring process. A significant majority of employers, around 95%, incorporate background checks as part of their hiring procedures, emphasizing the importance of verifying a candidate’s qualifications and history to ensure they are suitable for the job.
2. 92% of employers conduct criminal background checks. According to industry data, an overwhelming 92% of employers perform criminal background checks on their job candidates, which is a critical step in safeguarding the workplace from individuals with potentially dangerous criminal histories.
3. 87% of employers conduct employment verification checks. Employment verification checks are conducted by 87% of employers to confirm the accuracy of a candidate’s claimed work experience, ensuring that the applicant has the skills and qualifications they purport to have.
4. 72% of employers perform education verification checks. A significant portion of employers, 72%, validate the educational backgrounds of job applicants to ensure the veracity of their claimed academic achievements, which helps avoid the hiring of individuals with falsified educational credentials.
5. 67% of employers conduct reference checks. Reference checks remain a key part of the hiring process for 67% of employers, helping them gather additional insights into a candidate’s work ethic, reliability, and character from previous employers or colleagues.
6. 47% of employers conduct credit background checks for certain positions. Approximately 47% of employers perform credit background checks as part of their hiring process, particularly for positions that involve handling finances or sensitive financial information, ensuring candidates have financial integrity.
7. 36% of employers conduct motor vehicle record (MVR) checks. Employers in roles requiring driving responsibilities, such as truck drivers or delivery personnel, conduct motor vehicle record checks 36% of the time to assess the driving history and ensure the candidate’s suitability for such roles.
8. The global background check services market was valued at USD 4.95 billion in 2021. The background check services market was valued at USD 4.95 billion in 2021, highlighting the growing demand for background screening across various industries as a tool for enhancing hiring processes and maintaining security.
9. This market is expected to grow at a CAGR of 9.2% from 2022 to 2030. The global background check services market is projected to expand at a compound annual growth rate (CAGR) of 9.2% between 2022 and 2030, reflecting the increasing reliance on comprehensive background screening by businesses to ensure a secure hiring environment.
10. North America held 44.5% of the global background check services market in 2021. In 2021, North America dominated the global background check services market, accounting for 44.5% of the total market share, largely driven by the widespread adoption of background screening solutions across various sectors in the U.S. and Canada.
11. 34% of employers reported a bad hire due to not conducting a thorough background check. Around 34% of employers have experienced the consequences of a poor hiring decision due to failing to conduct thorough background checks, which led to issues ranging from incompetence to workplace misconduct.
12. 85% of employers caught applicants lying on resumes after conducting background checks. A staggering 85% of employers report uncovering lies on resumes after performing background checks, underscoring the crucial role that background screening plays in identifying dishonest candidates who misrepresent their qualifications.
13. The average cost of a background check ranges from USD 20 to USD 100. The cost of a background check typically falls between USD 20 and USD 100, depending on the depth of the check and the type of information being verified, making it a relatively affordable investment for employers.
14. Over 70 million Americans (nearly 1 in 3 adults) have a criminal record. As of recent estimates, more than 70 million Americans, or nearly one-third of the adult population, have a criminal record indexed in national databases, emphasizing the importance of criminal background checks in the hiring process.
15. The average turnaround time for a standard background check is 1 to 5 business days. On average, the turnaround time for conducting a standard background check ranges from one to five business days, depending on the complexity of the check and the responsiveness of the sources involved.
16. 52% of job seekers believe that background checks are a standard part of the hiring process. More than half of job seekers, approximately 52%, consider background checks to be a routine and expected part of the hiring process, which highlights the widespread recognition of their importance in ensuring candidate integrity.
17. 67% of HR professionals report background checks help improve the quality of hires. According to HR professionals, 67% believe that conducting background checks plays a significant role in improving the quality of hires by providing employers with a clearer picture of candidates’ qualifications and past performance.
18. Over 94% of companies use background screening to protect company reputation. A vast majority of companies, over 94%, use background screening as a means of protecting their reputation and reducing the risk of hiring individuals whose past actions could negatively impact the organization’s image.
19. Over 80% of background screening checks are conducted electronically. More than 80% of background screening checks are conducted electronically, which has greatly streamlined the process and improved the efficiency and speed of candidate evaluations for employers.
20. The U.S. makes up over 50% of the global background screening market. The United States holds a dominant position in the global background screening market, contributing to more than 50% of the total market share due to its robust regulatory environment and extensive use of background checks across various sectors.
21. The global pre-employment screening market was worth USD 3.85 billion in 2020. The global pre-employment screening market was valued at USD 3.85 billion in 2020, underscoring the significant financial investment that businesses make in ensuring they hire the right candidates.
22. The demand for AI-based background checks grew by 18% year-over-year since 2021. The demand for AI-driven background checks has surged by 18% annually since 2021, reflecting the growing adoption of artificial intelligence technology in the hiring process to improve efficiency, accuracy, and compliance in background screenings.
23. Background checks reduced employee theft incidents by 36% in retail companies. Retail companies that implement background checks have seen a 36% reduction in incidents of employee theft, demonstrating the effectiveness of background screenings in safeguarding businesses from potential internal fraud and misconduct.
24. 41% of small businesses conduct criminal background checks during hiring. Approximately 41% of small businesses include criminal background checks as part of their hiring process, which is particularly important for protecting the business from potential legal and safety risks associated with criminal activity.
25. The FCRA (Fair Credit Reporting Act) violations in background checks cost companies over USD 100 million in settlements between 2018 and 2022. Between 2018 and 2022, companies collectively faced settlements exceeding USD 100 million due to violations of the Fair Credit Reporting Act (FCRA) during background checks, underscoring the importance of adhering to compliance regulations when conducting screenings.
26. 49% of discrepancies found in background checks are related to job title misrepresentation. A significant portion, 49%, of discrepancies discovered during background checks are related to job title misrepresentation, indicating that candidates often inflate their job titles to appear more experienced than they are.
27. 33% of discrepancies found are related to educational qualification misrepresentation. Approximately 33% of discrepancies identified in background checks are due to candidates misrepresenting their educational qualifications, which is a common area for applicants to embellish their resumes.
28. 28% of employers report turnaround time as their top concern in background check services. Turnaround time remains the top concern for 28% of employers when selecting background check services, with businesses seeking efficient and timely processes to avoid delays in their hiring decisions.
29. Over 60% of gig economy companies now use background check software. More than 60% of gig economy companies have adopted background check software to vet independent contractors and freelancers, reflecting the need for thorough screenings even in non-traditional employment arrangements.
30. 56% of employers have rescinded a job offer due to information found in a background check. More than half, 56%, of employers have rescinded a job offer after uncovering unfavorable information during a background check, highlighting the significant impact that background checks can have on hiring decisions.
31. More than 90% of Fortune 1000 companies use background check vendors. Over 90% of Fortune 1000 companies rely on third-party background check vendors to perform comprehensive screenings, ensuring that their hiring processes are thorough and consistent across all levels of the organization.
32. 88% of employers believe background checks are effective in mitigating negligent hiring risks. A vast majority, 88%, of employers believe that conducting background checks significantly reduces the risk of negligent hiring, helping to identify potential threats or liabilities before making a hiring decision.
33. 40% of employers now conduct continuous or post-hire background checks. In an effort to maintain a secure and compliant workplace, 40% of employers have implemented continuous or post-hire background checks, ensuring ongoing monitoring of employees after they have been hired.
34. 75% of resume fraud is caught using background screening software. Background screening software is highly effective at detecting resume fraud, with 75% of all resume falsifications being uncovered during the screening process, helping employers avoid hiring dishonest candidates.
35. 12% of background checks result in findings that require additional investigation. Approximately 12% of background checks reveal issues that warrant further investigation, indicating that a significant portion of screenings uncover details that need to be verified or clarified before moving forward with a hire.
36. 81% of employers say background checks help maintain compliance with regulations. A majority of 81% of employers report that conducting background checks plays a key role in maintaining compliance with various legal and regulatory requirements, ensuring that they adhere to industry standards and avoid legal liabilities.
37. 45% of candidates withdraw their application when a background check is mentioned. Around 45% of job candidates choose to withdraw their applications once they are informed that a background check will be conducted, possibly due to concerns about the results or the scrutiny involved in the process.
38. The global market for biometric background checks is expected to reach USD 1.2 billion by 2026. The global market for biometric background checks is projected to grow substantially, reaching USD 1.2 billion by 2026, driven by the increasing adoption of advanced biometric technologies for identity verification and security in hiring processes.
39. 30% of failed background checks are due to identity verification issues. Identity verification issues account for 30% of failed background checks, indicating that discrepancies between the candidate’s provided information and official records are a common reason for screening failures.
40. 20% of applicants fail background checks due to falsified work history. Approximately 20% of job applicants fail background checks because they provide falsified work histories, either overstating their previous roles or fabricating job titles and responsibilities to enhance their resumes.
41. 18% of background checks uncover criminal records not disclosed by candidates. About 18% of background checks reveal criminal records that candidates had failed to disclose during the application process, highlighting the importance of thorough screenings in identifying hidden risks.
42. The adoption of background check software in healthcare hiring increased by 22% post-2020. Following the events of 2020, the adoption of background check software in healthcare hiring increased by 22%, as healthcare organizations recognized the critical importance of verifying the backgrounds of potential employees in an industry with significant regulatory and safety concerns.
43. 33% of background checks in finance identify compliance red flags. A third of background checks conducted in the finance sector uncover compliance-related issues or red flags, emphasizing the importance of thorough screenings to ensure candidates are adhering to industry standards and regulations.
44. 95% of employers have caught at least one lie on a resume using background checks. A remarkable 95% of employers have discovered at least one lie on a resume through the use of background checks, demonstrating how effective these screenings are at revealing dishonesty and ensuring candidates are accurately representing their qualifications.
45. Background checks in government hiring increased by 19% since 2019. Background checks in the government sector have risen by 19% since 2019, as public sector organizations have increasingly recognized the need for thorough screening to safeguard national security and ensure compliance with regulatory standards.
46. 76% of employers say checks help confirm if applicants have the experience needed. A substantial 76% of employers agree that background checks are an essential tool for confirming whether candidates possess the necessary experience for a given position, helping employers avoid mismatches and ensuring that the individual is suited for the role.
47. 46% of reference checks revealed discrepancies in candidate claims. Nearly half (46%) of reference checks uncover discrepancies in the claims made by candidates, whether related to job performance, achievements, or personal traits, further supporting the importance of thorough verification in the hiring process.
48. 13% of employment verification checks revealed falsified information. Approximately 13% of employment verification checks expose falsified information, including exaggerated work experience or fabricated employment dates, making verification a critical step in confirming a candidate’s honesty.
49. The background check software market is projected to reach USD 3.3 billion by 2025. The background check software market is forecast to reach USD 3.3 billion by 2025, driven by the increasing reliance on automated, efficient, and comprehensive background check solutions across various industries.
50. The global employment screening services market is expected to reach USD 5.9 billion by 2026. The global employment screening services market is projected to grow to USD 5.9 billion by 2026, highlighting the increasing demand for professional background screening as businesses strive to ensure compliance, security, and safety in their hiring processes.

Conclusion

The latest background check software statistics, data, and trends clearly underscore the growing importance of background screening technology in today’s data-driven and compliance-focused environment. As the global business landscape continues to evolve—fueled by digital transformation, remote hiring, gig economy expansion, and heightened regulatory scrutiny—background verification software has emerged as a cornerstone for secure, compliant, and trustworthy decision-making.

From the data presented, it is evident that the demand for automated, AI-powered, and cloud-based background check solutions is steadily increasing across industries such as corporate recruitment, financial services, healthcare, real estate, education, and gig platforms. Employers are no longer relying on outdated, manual processes that are time-consuming and prone to human error. Instead, they are embracing advanced screening technologies that offer real-time data access, seamless integrations with applicant tracking systems (ATS), customizable workflows, and comprehensive reports covering criminal history, identity verification, education and employment history, credit scores, and even social media behavior analysis.

What makes these trends especially critical is the rising emphasis on workplace safety, compliance with regional and international regulations such as the Fair Credit Reporting Act (FCRA) and General Data Protection Regulation (GDPR), and the growing need to mitigate hiring-related risks. As workforce models diversify and remote work becomes a long-term strategy, background check software is playing a pivotal role in maintaining trust, transparency, and due diligence—regardless of geographical boundaries.

Furthermore, innovations in artificial intelligence, machine learning, blockchain, and predictive analytics are revolutionizing how data is collected, verified, and interpreted. These cutting-edge technologies are not only enhancing accuracy but also accelerating the speed of decision-making, enabling businesses to onboard qualified talent faster while minimizing risk exposure. The growing shift toward mobile-optimized platforms, self-service screening portals, and user-centric dashboards further highlights the software’s adaptability to modern HR and operational needs.

For organizations aiming to stay competitive and compliant, keeping up with these latest statistics and technology trends is no longer optional—it’s a strategic imperative. Whether you are a business leader, hiring manager, compliance officer, or technology provider, leveraging the insights from the top 50 background check software statistics can help you identify current gaps, assess potential vendors, streamline verification processes, and align your screening practices with industry best standards.

In conclusion, the future of background check software lies in its ability to evolve in response to global workforce trends, legal frameworks, and technological innovation. As this space continues to grow and mature, staying informed about key industry metrics and developments will empower organizations to build safer workplaces, improve talent acquisition strategies, and foster long-term trust with employees, clients, and partners alike. The data and insights shared in this blog are not just numbers—they are strategic tools that illuminate the path toward smarter, faster, and more reliable background verification in 2024 and the years to come.

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People Also Ask

What is background check software used for?

Background check software is used to verify an individual’s identity, criminal history, employment background, education, and more for hiring or compliance purposes.

Why are background check software statistics important?

They help businesses understand industry trends, adoption rates, and the effectiveness of screening technologies for safer hiring and compliance.

What are the latest trends in background check software?

Latest trends include AI-driven screening, mobile accessibility, real-time data access, and integrations with applicant tracking systems (ATS).

How big is the background check software market in 2024?

In 2024, the background check software market is projected to reach billions in value due to increased global demand and digital hiring practices.

Which industries rely most on background check software?

Industries like healthcare, finance, education, real estate, and IT rely heavily on background check software for secure hiring and compliance.

What technologies are influencing background check software?

AI, machine learning, blockchain, and cloud computing are key technologies transforming background screening for speed and accuracy.

How does AI improve background check software?

AI enhances accuracy, reduces manual errors, and enables faster decision-making through automated data analysis and predictive insights.

Is background check software used globally?

Yes, companies across the world use background check tools to ensure compliance with local, regional, and international regulations.

What is the role of compliance in background check software?

Compliance ensures the software adheres to legal standards like GDPR, FCRA, and EEOC, reducing legal risks and promoting fair practices.

What data sources are used in background check software?

The software pulls data from court records, credit bureaus, government databases, social media, and employment or education institutions.

What’s the adoption rate of background check software in 2024?

Adoption rates have increased significantly, especially among small and mid-sized enterprises seeking faster and more reliable hiring tools.

Can background check software integrate with other HR tools?

Yes, most modern platforms integrate with HR systems like ATS, payroll software, and onboarding tools for seamless recruitment workflows.

Is background check software accurate?

Advanced software solutions use verified data sources and AI to deliver high accuracy, although accuracy also depends on data availability.

Are background checks legal in all countries?

Not all countries permit the same level of screening. Legal frameworks vary widely, making it essential to comply with local regulations.

What features should I look for in background check software?

Look for automation, real-time reporting, global screening capabilities, compliance tools, and integration with existing HR platforms.

How fast is a background check completed using software?

Depending on the type of check, results can be delivered in minutes to a few days, much faster than manual verification methods.

How does social media screening work in background check software?

It analyzes public online behavior to identify potential red flags like hate speech or illegal activity that may affect hiring decisions.

What are the risks of not using background check software?

Risks include hiring unqualified or dangerous individuals, legal liabilities, workplace safety issues, and damage to brand reputation.

How do background check tools protect data privacy?

They implement encryption, access controls, and comply with privacy regulations like GDPR to safeguard personal and sensitive data.

What’s the difference between criminal and civil background checks?

Criminal checks reveal legal offenses, while civil checks look into non-criminal records like lawsuits, bankruptcies, or evictions.

How often should background checks be updated?

Many companies perform checks during hiring, but for sensitive roles, ongoing or annual re-screenings are common to maintain compliance.

Are there background check tools for freelancers or gig workers?

Yes, platforms now offer scalable and fast screening solutions tailored for gig economy platforms and freelance hiring environments.

How is blockchain impacting background screening?

Blockchain ensures tamper-proof verification of credentials, offering more secure, transparent, and decentralized background checks.

Do candidates have to consent to background checks?

Yes, most regulations like FCRA require written consent from candidates before any screening can be legally conducted.

Can background check software verify international records?

Many platforms offer global screening capabilities, accessing international criminal records, education, and work history databases.

What’s the role of machine learning in screening software?

Machine learning helps improve pattern detection, automate risk analysis, and streamline decision-making based on historical data.

Are background checks different for employees and tenants?

Yes, employee checks focus on work and criminal history, while tenant screenings emphasize credit history, rental behavior, and evictions.

What is continuous background screening?

It’s an ongoing process that monitors individuals even after hiring, helping organizations detect risks post-employment in real time.

How can background check statistics help HR teams?

They offer insights into hiring trends, screening efficiency, and risk management, helping HR improve recruitment and onboarding strategies.

What is the future of background check software?

The future lies in predictive analytics, global verification capabilities, mobile-first platforms, and AI-powered decision-making.

Sources:

SHRM (Society for Human Resource Management)

Grand View Research

CareerBuilder Hiring Survey

National Association of Professional Background Screeners (NAPBS)

Statista

Forbes

IBISWorld

Allied Market Research

U.S. Bureau of Justice Statistics

HR.com Talent Acquisition Report

Checkr.com

GoodHire

HireRight Employment Screening Benchmark Report

Fair Credit Reporting Act (FCRA) compliance case reports

Society for Industrial and Organizational Psychology (SIOP)

U.S. Equal Employment Opportunity Commission (EEOC)

i-Sight Background Screening Data

Business News Daily

TechNavio Market Insights

Global Market Insights